RealtyTrac: Foreclosure activity could beat historic lows [VIDEO]
Posted on Monday, March 23, 2015 at 8:08:30 AM
Around the time of the housing bubble, looser residential financing lending standards helped contribute to the high number of foreclosures across the country. Since then, a number of regulations have tightened up lending, leading to a sharp decline in foreclosure activity.
This has recently continued, according to RealtyTrac. The housing data firm released a report that showed foreclosure filings declined 4 percent from January to February and 9 percent from February 2014 to February 2015. The current level is now the lowest it has been since July 2006.
"Given that August 2006 was the peak of the housing bubble, this eight-and-a-half year low in foreclosure activity is a significant milestone and a sign that nationwide foreclosure activity is on track to return to historic norms this year - and is possibly even headed below historic norms given the skinny-jeans-tight lending standards over the past five years," explained Daren Blomquist, vice president at RealtyTrac.
On the other hand, Black Knight Financial Services reported that repeat foreclosures increased 11 percent from December to January. Overall, this type of foreclosure made up 51 percent of total foreclosure starts that month.
The big picture shows that foreclosure activity is headed in the right direction, and could even beat out peak levels last seen right before the housing bubble.